The Bonneville Power Administration (BPA) and Columbia Falls Aluminum Company (CFAC), located near Kalispell, Mont., have agreed on a curtailment of the plants power supply from BPA for up to two years. The pact covers most of the 171 megawatts CFAC would purchase from BPA under a contract commencing Oct. 1, 2001.
“This agreement, like the one announced last week with Alcoa, provides a significant portion of the load reduction BPA needs to avoid very large rate increases this fall,” said Steve Wright, acting administrator of BPA.
BPA does not have sufficient supply to serve all of its customers requirements. By negotiating agreements with the aluminum companies to stay out of production for up to two years, the agency hopes to avoid purchasing power in the market. Absent load reductions by the companies and BPAs utility customers, wholesale rates could more than triple on Oct. 1. For more information, contact the Bonneville Power Administration.